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Why does majority of in-house erp projects tend to exceed its budget and time deadline?

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Question added by hirra khan , Ex Group Manager Internal Audit and System Control , GOURMET GROUP PAKISTAN
Date Posted: 2016/01/10
Rehan Qureshi
by Rehan Qureshi , Financial Consultant , Self Employeed

good answer by Mr. Kareem Salah

Anas Asad Ziadeh Ziadeh
by Anas Asad Ziadeh Ziadeh , Finance Director , IBDAA group

I agree with that answer added by expert

Kareem Saleh
by Kareem Saleh , IT and ERP Manager , Beirut Duty Free (PAC,Phoenicia AerRianta)

ERP implementation goes through a sequences of integrated phases where each phase has its own activities, input and outputs. Missing any of these phases or activities will lead to project deviation in planning and cost.

 

The in-house team must have the required knowledge of the ERP and its required functions. The functions must be compared to the business requirements to reach a successful result transferring the business needs into the required solution. Otherwise, more cost  and time is required to recover the missing requirements, thus more effort  from the team and longer periods presenting the solution as a failure.

 

The in-house team must understand the business needs very well, set the right expectations to the stakeholders and must communicate efficiently with all related business units. A clear plan must agreed among all parties and there frequent reporting must be provided to the project committee to discuss the project updates, risks, changes and incidents. There must be a single point of contact to manage the above with the stakeholders and any missing activity will create issues and prevent having the relevant information to reach a clear right decision.

 

Lack in the technical details and core structure of the ERP will lead to wrong customization wrong capacity, availability, security and capability requirements.

 

Above issues can be very critical and may lead to bankruptcy  of the whole organization, that is way the full cycle implementation must be carefully studied and planned and measure risks before having a decision on having an in house implementation.

 

Emad Mohammed said abdalla
by Emad Mohammed said abdalla , ERP & IT Software, operation general manager . , AL DOHA Company

I fully agree with the answers been added by EXPERTS.....Thanks.

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